Production server setup problems

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http://serverfault.com – I'm trying to setup rails 3.0.10 on a Ubuntu VPS server. I'm using postgres 9.0.4, Apache and passenger. When I run my server I get this error: PGError could not connect to server: No such file or directory Is the server running locally and accepting connections on Unix domain socket "/var/run/postgresql/.s.PGSQL.5432"? Naturally, the postgres server is runing and if I do 'rails server' the app works great with webbrick. During installation I installed Postgres and Apache as root, while I installed ruby and rails using rvm as another user. Could that be it? What is the proper way to insta (HowTos)